Beware! FXonus is an offshore broker! Your investment may be at risk.
RECOMMENDED FOREX BROKERS
Don’t put all your eggs in one basket. Open trading accounts with at least two brokers.
Few are the shady brokers that can impress us with a visual style, and FXonus really comes close, but we cannot ignore all the signs that work against this company. Yes, we confess that we like the structure of the site as well as the imagery, but there is no need to go easy on FXonus, only because it’s nice to look at. We are here to deal with what truly matters: the trading condition that the broker offers, and if FXonus answers the ultimate question: is it worth investing in? Read the review to find out.
Registering is the first step towards the truth, and in the case of FXonus the process was fast and simple. We could not open a live trading account, understandingly, but we could launch a demo one. While creating demo trading account, we had the ability to chose a leverage capped at 1:500, a value mostly offered by offshore brokers.
We proceeded to opening an MT5 demo server account. After some nuisance in finding the broker’s servers, we were quickly logged in the trading software. Unfortunately, the demo account gave us no available tradeable assets, and as a result no spreads to rely on.
According to the website, the trading instruments are forex currency pairs, commodities, futures, cryptocurrencies, spot indices, shares, and IPOs. We found no spread values anywhere.
The website of FXonus can be accessed in English, Arabic, German, French, Spanish, Russian, Vietnamese, Persian, Cambodia, and Nigerian-English.
FXONUS REGULATION AND SAFETY OF FUNDS
The website gives us a Republic of the Marshall Islands Maritime and Corporate Registries link, that leads to an error page of the website. Now, even if somehow FXonus were to be found on the website, it wouldn’t make a difference. A broker must be regulated by a FX trading license issuer in order to provide legal FX services. The Marshall Islands does not have an FX regulator.
Furthermore, in the footer we read that the user is the only one who is responsible for complying with all applicable laws in the relevant jurisdiction, which puts enormous pressure on users that is completely unnecessary. Only the broker must make sure it complies with the laws of a nation!
These are all symptoms of an UNLICENSED broker.
To deposit in an unlicensed broker is the equivalent of throwing your money away for no reason. We always say that the first thing to do when dealing with any broker is to check for a license; this should be your priority! Usually, we would go for either an FCA or CySEC regulated brokers or other respected overseers. These regulators all employ harsh rules and impose very severe penalties on those brokerages that do not abide by the scrupulous rules. Furthermore, some agencies, like the FCA and CySEC, include reimbursement schemes to all users of brokers under their wings. These compensation funds schemes, as they are called, are put into action once broker cannot pay their clients back to bankruptcy. CySEC guarantees up to €20 000 per person, while the FCA guarantees up to £85 000.
FXONUS TRADING SOFTWARE
We are again in the company of an unregulated brokerage that has somehow gained access to the MT5 software.
By far the most effective platform on the market, the MT5 marked the start of new FX trading standards by improving on the MT4 in almost every way. Users can take advantage of hundreds of different tools to improve their trade game!
FXONUS DEPOSIT/WITHDRAW METHODS AND FEES
Unfortunately, the user area did not reveal any payment options. None of the payment subsections gave us any real options to chose a payment option.
On the website we learn of many payment methods, using cards, wire transfers, and alternative payment methods, but we can never be sure that FXonus is telling the truth. We could not find any evidence of a minimum deposit.
The website claims that withdrawals are done through the same payment methods as the depositing ones. The processing times for requests is 1 to 5 days. There is a $20 fee if the user withdrawals anything less than $100. Anything bigger than $100 is free to withdraw, although we cannot vouch for any of these conditions.
We read in the legal documents that the company commissions fees, but it never says to what end. This type of beating around the bush is common with unlicensed brokers.
As we expected, not only is FXonus unlicensed, but it is also a clear risk to all investors and their personal details. Do not invest here!
How does the scam work?
The straightforward way into an investment scam is through the thousands of online ads that flood our browsers and social media sites. These are those familiar ads that promise impossible returns and luxurious lifestyles as a result of investing.
Succumbing to such ads will lead to either the scammer investment site, or to an intermediary source with close ties to this and other fraudulent websites.
In either case, the user will be asked to provide a phone number and probably an email address. The purpose of these is for the reps of the scam to be able to contact the client and push for initial investments. This is the first wave of the fraud, and is usually done by the rookie team.
The second wave is the pros, sometimes those behind the whole scam. These are charming and cunning individuals, whose communication skills can potentially result in the users to invest a second, or third, or even fourth time.
Basically, the scam continuous until the client realizes that she is being scammed. At that moment, when she wishes to withdraw or has questions for the scammer, it is already too late.
The culprits will easily ignore all requests or stall them. There are times when unlicensed brokers even terminate entire accounts, and on rare occasions entire websites are closed!
What to do if scammed?
The safest way to get your money back is to file for a chargeback using your credit or debit card provider. MasterCard and VISA have a chargeback period of 540 days. However, this only applies if you have deposited through a card.
Wire transfers are more difficult to reimburse, although some banks may have a specific plan for such times, so we advise users to directly contact their banks and ask them for help. What’s crucial is for users to change their bank account user names and passwords as soon as possible.
As for any funds invested through a cryptocurrency wallet, be sure that they are lost! Crypto transfers are untraceable!
And finally: never trust recovery agents or agencies. These are fraudsters who will ask for money in return for nothing. Do not trust these!